HDFC Bank Shares Advances As RBI Seeks Feedback On Anup Bagchi For MD And CEO Post

Shares of HDFC Bank advanced nearly 1% on Tuesday, extending gains for a second session, after the Reserve Bank of India began seeking feedback on Anup Bagchi's candidature for the bank's next managing director and chief executive officer.

Bagchi, currently MD and CEO of ICICI Prudential Life Insurance, has emerged as the frontrunner for the post, with the RBI seeking feedback from the insurance regulator IRDAI and ICICI Bank CEO Sandeep Bakhshi as it assesses his candidature, The Economic Times reported.

HDFC Bank's succession process has gained importance ahead of incumbent MD and CEO Sashidhar Jagdishan's term ending on October 26. The bank had submitted two candidates to the RBI earlier this month for a three-year term, with Bagchi and deputy managing director Kaizad Bharucha subsequently identified as the two names.

Bagchi, 55, has been at the helm of ICICI Prudential Life since 2023. He has more than three decades of experience across banking and financial services and previously served as an executive director at ICICI Bank, where his responsibilities included wholesale banking, transaction banking, markets and proprietary trading. He has also headed ICICI Securities.

HDFC Bank CEO succession moves closer to decision

The RBI's feedback process comes ahead of the end of incumbent MD and CEO Sashidhar Jagdishan's term on October 26. Jagdishan informed the bank's board last month that he would not seek another term, prompting HDFC Bank to accelerate its search for a successor.

HDFC Bank submitted two names to the RBI earlier this month for a three-year term. While the bank did not disclose the candidates in its official announcement, recent reports have identified Bagchi and HDFC Bank Deputy Managing Director Kaizad Bharucha as the two names.

Bharucha, 61, has been a whole-time director at HDFC Bank since June 2014. His candidature comes with a separate regulatory consideration, as he would reach the RBI's 15-year ceiling for continuous tenure as a whole-time director, MD or CEO in June 2029.

The search for Jagdishan's successor began with a much wider pool. HDFC Bank reportedly received more than 150 applications, with around 50 candidates shortlisted and fewer than 10 eventually interviewed before the field was narrowed down.

The RBI's assessment of Bagchi comes as the lender approaches a closely watched leadership transition. At ₹746.50, the stock has recovered more than 5% from its September 11 close of ₹708.25, although it remains sharply lower for the year.

Also Read - GAIL Gas Begins IPO Process For ₹3,100 Crore Issue As Merchant Banker Bids Expected In October